JPMorgan Cut Potential Losses to Madoff Funds Last Fall

JP Morgan Chase says it cut its exposure related to Bernard Madoff last fall; but angry investors want to know why they weren't told about it.

JP Morgan Chase says it cut its exposure related to Bernard Madoff last fall, months before the disgraced financier was arrested; but angry investors want to know why they weren't told about it.A JP Morgan spokeswoman, Kristin Lemkau, said the bank withdrew from the Madoff-linked funds last fall after "a wide-ranging review of our hedge fund exposure," according to a New York Times article.

Lemkau acknowledged that the bank also "became concerned about the lack of transparency to some questions we posed as part of our review."
She said investors were not alerted to the move because, under sales agreements, the issues did not meet the threshold necessary to permit the bank to restructure the notes they still held.

Under those circumstances, she added, "we did not have the right to disclose our concerns."

But investors say they were the first people who should have been alerted to the bank's concerns, according to the NYT.

Click here for the full NYT article.JP Morgan Chase says it cut its exposure related to Bernard Madoff last fall; but angry investors want to know why they weren't told about it.
Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio